Commission on Devolution in Wales

Debate between Lord Murphy of Torfaen and Roger Williams

Thursday 3rd November 2011 Commons Chamber

[Paul Murphy]

Yes; I am talking in general terms and that may well be an exception. A block grant, based on need, going to various parts of the devolved administration is the system that was decided on. That is why we have to be very careful; we tinker with this at our peril.

An issue on which the Secretary of State and I had an exchange back in May was about whether, were there ever to be income tax-raising or varying powers in Wales, we should have a referendum to approve that. She stated in her answer to me:

“He is quite right that giving tax-raising powers would involve another referendum”.—[Official Report, 11 May 2011; Vol. 527, c. 1148.]

It would not be constitutionally right or proper for there to be tax-raising or tax-varying powers in Wales, so far as income tax is concerned, without the people’s saying so.

[Roger Williams]

I do not think it has ever been suggested that the block grant should be replaced entirely by tax-raising powers. Most systems rely on a hybrid system, as with local government systems, in which there is a block grant as well as tax-raising powers.

[Paul Murphy]

I think that if the National Assembly for Wales ever had any tax-raising powers, the system would involve such hybridity. However, I say to the hon. Gentleman that there is a concern, which I suspect is shared by people in Northern Ireland, although the comparison between Northern Ireland and Wales can go only so far because there is a land border between Northern Ireland and another sovereign state on the island of Ireland and, obviously, we have no such border. It is suggested that if a corporation tax were introduced in Northern Ireland, although some interesting benefits could result from it, the block grant would be reduced correspondingly. If that is what is happening in Northern Ireland I would say to the Silk commissioners to beware, because the same could happen in Wales. We might be told, “You can have this tax or that tax, but we’ll cut your block grant,” and that will address the accountability gap that has been referred to. That would be dangerous because it would mean that what we are entitled to through the United Kingdom taxation system would be reduced by even more than is the case at the moment.

In recent months, other Members of Parliament have said in the House of Commons, including, doubtless, in this debate, “Wales, Scotland and Northern Ireland do much better than we do in the English regions. Look at the Barnett system that they have had for all these years. Look what they can do in Scotland—they can change student fees and pay to have their old people in homes and all the rest of it.” But those people forget that those countries might not do other things in the way that England does. That is what devolution is all about.

The thrust of that argument is that we in Wales are somehow or other getting more money than any other part of the United Kingdom. That is the case for some parts of the UK, but an interesting fact was referred to by the Holtham commission and in the House of Commons note in relation to the Oxford Economics report, which my hon. Friend the Member for Swansea West (Geraint Davies) mentioned. If we say how much money goes to Wales from central Government and how much money is raised in Wales, of course there will be a deficit. In Wales, the deficit between the money raised and the money going in is £14.6 billion. Some might say that that is a great deal of money, but in the south-west, across the Bristol channel from us, the deficit is £15.6 billion. In the west midlands, across the border from Powys, it is £16 billion, whereas in Yorkshire and Humberside it is £16.9 billion and in the north-west of England it is £23.9 billion. Let no one in this House, or anywhere else, tell us that somehow or other we are getting some sort of better deal in Wales than the English regions. It simply is not true.

There are two other issues on finance including, first, the Barnett formula, on which my right hon. Friend the Member for Neath touched. I cannot for the life of me understand why it is impossible for the Silk commission to consider the Holtham commission and, indeed, what happens to Barnett as part of its remit. I am not suggesting that it should hold up discussions between the Secretary of State, the National Assembly for Wales and the Welsh Government, but to say that a commission that is dealing with the Assembly’s financial responsibilities cannot look at how the block grant is dealt with is daft.

[Roger Williams]

I agree, but it has been suggested that such an approach would not be welcomed by the Welsh Assembly Government.

[Paul Murphy]

That is for the two Governments to discuss. In the House of Commons, we are debating what it is sensible for the Silk commission to consider. I said that I did not want that to hold up any discussions that are under way, because there are implications for Scotland and Northern Ireland, but it is crazy that that cannot be discussed while all the other issues affecting money are being discussed.

I cannot understand from the response of the Secretary of State to the hon. Member for Monmouth the difference between current and future borrowing. Either one agrees with the concept of the Welsh Government being able to borrow, or one does not. The Northern Ireland Executive and the Scottish Government will be able to borrow, and local government can borrow, so why on earth can the Welsh Government not borrow? It is quite incongruous that that is the case, and I am glad at least that they can discuss borrowing, even if they cannot discuss borrowing at the moment.

Part II of the terms of reference is about powers and functions, and I agree that there is a case for looking at incongruous and difficult cross-border issues, which need to be tidied up. Most Members of the House of Commons would be wary of transferring policing and justice to the Welsh Assembly. We have a different system from Scotland, and we are so bound up with the English judicial and legal system that I would not agree with such a transfer. Another issue that will not be discussed at all by the commission—this is why it would have been useful for the House of Commons to discuss its terms of reference before we had the debate—is the way in which the Assembly is voted in. If there is going to be a reduction in the number of constituencies, presumably to 30, with a relationship between Parliament and the National Assembly, which is voted on, it is unusual that that issue should not be debated or discussed by the Silk commission, particularly as any decision on how we elect the Welsh Assembly should be based on a proper mandate at a general election. I hope that the Secretary of State and her Government will not even contemplate discussing those matters until after the next election.

--- Later in debate ---

[Roger Williams (Brecon and Radnorshire) (LD)]

It is always a privilege and a challenge to follow the right hon. Member for Torfaen (Paul Murphy). He put forward some considered and powerful arguments that I am sure the commission will read and take into account when they set out their programme for the work that they have to undertake.

As we look forward to Armistice day and remember the men and women who have made a sacrifice for this nation, we also remember the Welsh men and women who are currently serving in the British Army. Just today I had an e-mail from Brigadier Russ Wardle, who recently finished his tour of duty as brigadier of 160 (Wales) Brigade in Brecon. He told me that 40 servicemen are still in Baghdad performing important roles, training the Iraqi army and police in the duties they will take up shortly. I will meet the new brigadier, Brigadier Napier, shortly. I am so pleased the 160 (Wales) Brigade will stay in Wales, contrary to speculation just before the Welsh Assembly election.

I thank the Secretary of State for securing this important debate, which has already proved its worth. It is a great day for Wales. It is fantastic that there is cross-party consensus on the commission’s terms of reference to take a considered view on the funding and future of the Welsh Assembly. Liberal Democrats have consistently supported a commission to look at the funding arrangements between Westminster and Cardiff, and it is to the credit of the coalition Government that the Silk commission will go ahead after 13 years of Labour inaction on this crucial issue. Notably, the three promises on Wales made in the coalition agreement—the housing LCO, the further powers referendum and the commission—have now been met, and I commend the right hon. Lady for that. With good Conservative support, Liberal Democrat policies are helping the people of Wales.

[Paul Murphy]

The hon. Gentleman refers, rather provocatively for him, to Labour inaction and the fact that great events have taken place, but does he accept that it was a Labour Government who brought in devolution in the first place?

[Roger Williams]

I absolutely accept that and am sure that he would accept that Labour had the full support of the Liberal Democrats, including those in Wales. Indeed, my predecessor, Richard Livsey—sadly, deceased—played an important part in that and, I am sure, would have liked to play a part in the Silk commission, too.

That is not to say that the Secretary of State’s work is over; many other things need to be done for Wales, including nurturing and supporting the devolution settlement. I look forward to working closely with her in the near future.

Police Reform and Social Responsibility Bill

Debate between Lord Murphy of Torfaen and Roger Williams

Monday 12th September 2011 Commons Chamber

[Paul Murphy (Torfaen) (Lab)]

I am grateful to be able to speak to the amendment in my name and the names of my hon. Friends. The amendment is specifically about how the Bill affects Wales. In particular, it is about the relationship between the National Assembly for Wales, the Welsh Government and the British Government, and about the decision to hold the election for police commissioners in November.

When we last debated this, we talked about the so-called respect agenda, which respects the views, positions, functions and responsibilities of the devolved Administrations, Assemblies and Parliaments in the United Kingdom. The Minister touched on this in his speech when he rightly pointed out that the business of policing is not devolved—that it is still a reserved matter. My right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), who is sitting in front of me, agreed, when he was Home Secretary, that there should not be devolution of policing as we know it to the Welsh Assembly. However, 10 years of devolution have passed, and we now have a shared responsibility for matters that touch on police, crime and justice. Although the National Assembly for Wales does not have a specific responsibility for policing, the Minister knows that half the money that goes to police forces in Wales comes from the National Assembly, because local government in Wales is devolved. In addition, the Assembly and the Welsh Assembly Government have functions and duties that are central to the operation of policing. The relationship between the Home Office, the Welsh Assembly Government and the National Assembly is therefore crucial. I fear that by continuing to push the Bill through both Houses, the Government will damage the relationship between Cardiff and London.

The Minister and the House will recall that, uniquely, the Welsh Assembly refused to give legislative consent to part 1 of the Bill. That is unprecedented. Similarly, because of the special relationship that the Welsh Assembly has to policing, the Culture and Communities Committee of the Assembly asked the Government to delay the implementation of police commissioners in Wales until it saw how the measure worked in England and could understand how it would affect Wales. That request was ignored.

Worse, the Government are now insisting on a November election in Wales without consulting the Welsh Assembly Government or the National Assembly. We have more elections in Wales, as we have had over the past year. We have had the referendum on extra powers, we have elections for the National Assembly and there are local government elections next year.

The Minister knows that the cost of the election for the whole of the United Kingdom, which was a matter of debate some hours ago, will be at least £25 million more than was expected. He says that that money would not necessarily have been spent on policing, but it could have been. He dismisses the additional £25 million on top of the £50 million that was already to be spent. One should compare that with what was said by the Parliamentary Secretary, Cabinet Office, the hon. Member for Forest of Dean (Mr Harper), who told the House not so very long ago—this is rather pertinent because of today’s and tomorrow’s news—that reducing the number of Members of this House of Commons by 50 will save £12 million. By changing the day of one election, that amount has been doubled overnight—so much for those predictions about money being saved.

Who on earth wants elections in November? All of us who have been involved in elections for too long to remember know that elections in November have disastrous turnouts. Add together the dark evenings and an electoral register still under discussion, and I would place a bet here in the House of Commons that the turnout for the elections for police commissioners will be rock bottom. Heaven only knows who might be elected on a low turnout.

The Minister and others talk about operational accountability. Of course Prime Ministers, Secretaries of State and Ministers do not tell the police what to do. When I was Secretary of State for Northern Ireland and held responsibility for policing, I never told the Chief Constable of the Police Service of Northern Ireland what to do, although we would discuss it. However, can it be imagined that those who want to be elected on a very local level as police commissioner will not campaign on what are effectively operational issues? Add to that that the nuttiest people are likely to be elected if the turnout is low. That is a dangerous development that we face.

Our constituents simply will not understand how we can spend £25 million on changing the day of the election for police commissioners, £50 million on the elections themselves, and millions of pounds on administering the position of police commissioners, when over the next two years in Wales at least 800 police officers will get the sack.

[Roger Williams (Brecon and Radnorshire) (LD)]

Perhaps the right hon. Gentleman will help me by spelling out the effect of his amendment. Would the Welsh Assembly not need to hold elections for police commissioners or would it still have a duty to select a date for the elections?

Constitutional Reform (Wales)

Debate between Lord Murphy of Torfaen and Roger Williams

Thursday 19th May 2011 Westminster Hall

[Paul Murphy]

I entirely agree with my right hon. Friend and that was why a meeting of the Welsh parliamentary party was called.

[Roger Williams]

rose—

[Paul Murphy]

I will give way in a moment. I just want to finish my point regarding the consensus among Welsh Members, including Welsh Conservative Members. I am beginning to feel that there is a belief among some Conservative Members of Parliament—I exclude all Welsh Conservative MPs from this criticism—that they would be better off with an English Parliament, without Welsh or Scottish Members of Parliament, and that does a great disservice to the Conservative party because both in Wales and Scotland it is still a powerful political force. We should all join together to ensure that Welsh MPs, whether they be Conservative, Plaid Cymru, Liberal Democrat or Labour, can express their views in this place.

Another issue is that Welsh-speaking constituencies will find themselves with less representation in this Parliament than they would have done under the current system of the 40 MPs. Again, try to explain that to an English Member of Parliament. All of us know how important it is that Welsh-speaking Wales is represented here, not least because there are issues affecting the Welsh language that are still dealt with in Parliament.

[Roger Williams]

I agree that we should have had the opportunity to debate this matter in full—whether it be on the Floor of the House, in a St David’s day debate or a Grand Committee debate. However, I am in disagreement with the right hon. Gentleman. When Welsh MPs come together on a particular matter, it does not matter whether we number 30 or 40. But if we started off with 30 Welsh MPs, could we honestly argue to be increased to 40? It seems to me that that argument just could not be made.

[Paul Murphy]

It will be the fewest number of Members of Parliament representing Wales since 1832. I am not convinced that 30 is a sensible and reasonable representation, which is what every country must have. I am not saying that each constituency should not be equally sized in terms of numbers, but an amendment was tabled in the other place that sought to ensure that there was a variation of 10% as opposed to 5%. A 10% variation would, in many ways, have solved the problems to which the hon. Member for Monmouth rightly referred in terms of our geography, our values, and our rural seats. If we had had that flexibility, the distorted seats that we will end up with in Wales would not have happened.

In conclusion, I do not want to see the Conservative and Unionist party becoming the Conservative and Separatist party, and I am saying that as a Labour Member of Parliament. There is an onus on all of us who represent Welsh constituencies to ensure that the Government listen and that we are not heading towards an English Parliament as opposed to a United Kingdom one.

West Lothian Question

Debate between Lord Murphy of Torfaen and Roger Williams

Tuesday 29th March 2011 Westminster Hall

[Paul Murphy]

But I do represent people on health matters because of decisions made by the British Government on health spending. As I said earlier, if they put spending up, that has a direct consequence for the people of Wales: their spending will go down. My right hon. Friend the Member for Delyn referred to cross-border implications; the English health service is important to Welsh Members because of those implications.

Let me say to the hon. Member for Cities of London and Westminster (Mr Field) that I voted on the Bill to set up the London authority. I also voted on issues that affected only Scotland before devolution, and all of us could vote on matters affecting Northern Ireland. There were times when those decisions were highly controversial, such as when the poll tax was introduced in Scotland. That was done on the basis of English MPs agreeing to it, but we had to accept that the principle of British MPs voting on British issues was still important, however disagreeable we thought it might be.

Northern Ireland is a good example, because it had its own devolved system from the early ’20s to the ’60s. The Stormont Parliament dealt with all the issues for which it was responsible—education, health and so on—but Northern Ireland MPs still had a say and a vote on matters that affected England, Scotland and Wales. Indeed, it was when Harold Wilson complained in the ’60s that although steel nationalisation was not a matter that affected Northern Ireland, Northern Ireland Members were voting on it, that the Conservative party pointed out that all Members in the House of Commons were equal, in terms of their constitutional rights.

Another problem is that of creating two classes of MPs. I quote again from Kilbrandon:

“in our view, therefore, all Members of Parliament, whether or not they come from regions with their own legislative assemblies, must have the same rights of participation in the business of the House of Commons”.

No European country has two-tier MPs. The nearest country to us in terms of asymmetrical devolution is Spain. I asked the Library to have a look at that situation, and it assured me that all Spanish MPs have exactly the same rights in their Parliament as we do in ours, despite the fact that virtually every aspect of domestic policy is heavily devolved to parts of Spain such as the Basque country and Catalonia.

There would be a problem—the hon. Member for Monmouth has left—if we were to accept two classes of MPs, and if Welsh Members could not vote on English issues, whatever they might be. The UK Parliament is in danger of becoming an English Parliament, and that is very dangerous. What about the House of Lords? This has never been an issue, but it may vote on anything, including matters on which Welsh Members of Parliament could not.

The biggest single issue, however, is that when I vote, as a citizen of the United Kingdom who happens to live in Wales, I vote on the policies of the parties as they affect the United Kingdom, but as a Welsh Member of Parliament, I vote on issues that affect, for example, the English health service. That happens in Scotland. All that cannot be disentangled. What would happen if there were restrictions on Members of Parliament and a Government could not carry a majority on English issues, but could on United Kingdom issues? When a potential Prime Minister goes to the palace, having won a United Kingdom general election, does the Queen ask whether they have a majority in England? That is the problem, because there would be a constitutional mess that we have never previously experienced.

[Roger Williams (Brecon and Radnorshire) (LD)]

I am listening to the right hon. Gentleman’s argument with great attention, and agree with much of it, but the key issue is that the real change in governance in Wales was voted on by the whole House of Commons, including all English MPs, and they presumably understood the implications of the decision.

[Paul Murphy]

Presumably they did, but when English, Scottish and Northern Ireland Members of Parliament voted for the Welsh settlement, they voted for something that was put to the people in 1997: first, that there would be a devolved Assembly; secondly, that there would be the same number of Members of Parliament; and, thirdly, the issue of whether Welsh Members of Parliament were not able to vote on certain issues in the House of Commons was specifically excluded. People in Wales, Scotland and indeed Northern Ireland voted in referendums that in no way denigrated the power or responsibilities of their Member of Parliament.